Turkish clothing exports may slump almost 80 per cent as global brands cancel billions of dollars of orders. Turkish companies are in talks with brands such as H&M, Marks & Spencer and Primark over payments and orders placed, reveals the Istanbul Apparel Exporters’ Association. Hundreds of billions of dollars of clothing in the country await shipment
Exports by the industry shrank by an annual 27 per cent in March but the decline could exceed 70 to 80 per cent by April or May. Turkish apparel companies had expected exports of $19 billion this year, with about 70 per cent destined for the European Union and Britain. However, manufacturers are now working at around 30 percent of capacity compared to 85 per cent three months ago. Many firms have suspended production, while others are working at minimum levels. There is no sign that the situation will improve over the next three months at least.
To tide over this, the association has requested the government to provide financial support for shorter working hours for at least five months from the start of April. It should also ensure that social security, taxes and bank loan repayments are delayed for a year.